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Indifference curves are convex. or bowed toward the ' origin. because * O a. each indifference curve represents a constant, but different level of utility. b. of diminishing marginal utility: the 0 consumption of an additional unit of a good generates a smaller increase in total utility,r than the previous unit consumed. O c. they are not allowed to intersect one another. 0 d. they are downward sloping. :r. ._f. -..- Statement 1 Two indifference curves cannot cut each other because each indifference curve represents a different Level. of satisfaction Statement 2 An indifference curve is related to choices and preferences of consumer * 0 Both are true 0 Both are false 0 False, True 0 True, False Suppose that Dina gets 40 units of utility when he consumes 2 hot dogs and 3 sodas and he gets40 units of utility when he consumes 3 hot dogs and 1 soda. Then, * a. Bob must like hot dogs more than soda. O b. Bob must like soda more than hot dogs. c. these two combinations of hot dogs and O soda must lie on the same indifference curve. O d. these two combinations of hot dogs and soda must lie on the same budget line. Statement 1 Moving along an indifference curve the consumers do not prefer one consumption point to another. Statement 2 As we move down the indifference curve from left to right, the slope of the indifference curve tends to decline * O Both are true O Both are False O False, True BO True, FalseStatement 1 Our optimal decision will lie on our highest possible indifference curve Statement 2 Any point below the budget line is considered feasible but inefficient * O Both are true O Both are false O False, true O True, falseYou have been told by the chief financial officer of the hockey skate factory that you have PHO to spend on salaries and with that you are to assemble as mom,l hockey skates as possible. Each of your employees. Joe and Zac. both make a wage of P10 an hour. Which is correct? * 0 if we spent all of our money on Joe, we could hire him for4 hours 0 If we spent all of our money on . we could hire him for 4 hours 0 If we hire 230 for 3 hours we can spend only 20 pesos for Joe 0 All of the above 0 A and B only 0 B and C only 0 Other